Superior Refinery produces oil products in a joint production process. For the month of October, $450,000 of materials, labor and overhead were added to produce the three main products: M1, M2, and M3. The physical quantities of the outputs are considered relevant for cost allocation purposes. The following diagram shows the process.

			M1 15,000 units
Joint costs $450,000			M2 20,000 units
			M3 25,000 units

Required:

Allocate the joint costs to the products using the physical quantities method.

Answer rating: 100% (QA)

To allocate the joint costs to the products using the physical quantities method we will use the phy... View the full answer